On October 9, Henan Shuanghui Investment&Development Co.,Ltd. (000895.SZ) issued an announcement stating that the company, along with its controlling subsidiary Wangkui Shuanghui Beidahuang Food Co., Ltd. ("Wangkui Shuanghui") and relevant directors and senior management personnel, recently received multiple Administrative Penalty Decisions from the Wangkui County Agriculture and Rural Affairs Bureau, the Luohe City Animal Husbandry Bureau, and the Luohe City Market Supervision Administration, with total fines and confiscations amounting to approximately 129 million yuan. The announcement also disclosed six rectification measures and estimated that the above penalties will reduce the company's net profit attributable to shareholders for the 2026 fiscal year by 6.3806 million yuan.
Three Departments Impose Combined Fines and Confiscations of Approximately 129 Million Yuan
This penalty stems from a spot inspection. On August 28, 2025, the Changchun Customs Technology Center, during a food safety supervision spot inspection organized by the Heilongjiang Provincial Market Supervision Administration, conducted a spot check on pork hind leg meat produced by Wangkui Shuanghui and sold by the Minghu Branch of Heilongjiang Bilin Youxuan Chain Supermarket Co., Ltd. in Ranghulu District, Daqing City. The lincomycin test result was found to be non-compliant.
According to the 7th food safety spot inspection notice for 2026 published by the Heilongjiang Provincial Market Supervision Administration on May 14 of this year, the non-compliant sample contained lincomycin at 7,700 μg/kg, exceeding the national standard limit of 200 μg/kg by nearly 38 times (37.5 times).
According to regulatory authorities' traceability investigation, the batch involved 910 live pigs, and the related products were sold to distributors through Shuanghui Development's own sales channels under the name of Luohe Shuanghui Food Sales Co., Ltd. Among them, 36 head of white-strip pork sold to Daqing Suixin Economic and Trade Co., Ltd. had some pork flow into the aforementioned supermarket.
The Wangkui County Agriculture and Rural Affairs Bureau ordered Wangkui Shuanghui to immediately stop selling non-compliant products and imposed two penalties: First, Wangkui Shuanghui was found to have sold agricultural products with veterinary drug residues not meeting agricultural product quality and safety standards, with the involved goods valued at 1.6539 million yuan. Additionally, there were issues such as insufficient numbers of meat quality inspectors holding certificates and production facility equipment not meeting national quality and safety regulations. The illegal gains of 1.6539 million yuan were confiscated, along with a fine of 33.0779 million yuan. Second, for failing to implement the pre-slaughter fasting and resting system as required by the Pig Slaughtering Quality Management Standards, with the pre-slaughter fasting and resting period not reaching 12 hours, a warning was issued and a fine of 50,000 yuan was imposed.
The Luohe City Animal Husbandry Bureau imposed penalties on Shuanghui Development. It determined that Shuanghui Development sold agricultural products with veterinary drug residues not meeting agricultural product quality and safety standards, involving 910 live pigs, with goods valued at 1.701 million yuan and illegal gains of 1.701 million yuan. The illegal gains were confiscated and a fine of 34.0193 million yuan was imposed.
The Luohe City Market Supervision Administration imposed penalties on Shuanghui Development and relevant responsible persons. The penalty decision stated that Shuanghui Development had problems including failing to establish inspection standards for the "pig resting period," failing to equip a food safety director commensurate with the enterprise scale as required, and failing to strictly implement relevant product sampling and testing management standards. In addition, the company incorrectly stated 5,892 head and 38,863 head as 5,892 batches and 38,863 batches in its apology statement, violating relevant provisions of the Anti-Unfair Competition Law of the People's Republic of China. The company was given a warning and fined 2 million yuan; Chairman Wan Hongwei was fined 37.6462 million yuan, Director and President Ma Xiangjie was fined 5.661 million yuan, Vice President Qiao Haili was fined 6.4695 million yuan, and Chief Engineer Wang Yufen was fined 6.5862 million yuan.
Shuanghui Development Pledges Rectification
Shuanghui Development stated in the announcement that it sincerely accepts the administrative penalties from relevant departments, resolutely and comprehensively implements rectification requirements, and solemnly extends its most sincere apologies to consumers and the public. The announcement stated that based on the circumstances determined in the Administrative Penalty Decisions, the relevant matters will not cause the company to trigger mandatory delisting due to major violations, and the above penalties will reduce the company's net profit attributable to shareholders for the 2026 fiscal year by 6.3806 million yuan. As of the date of the announcement disclosure, the company's various production and operation activities are proceeding normally.
The announcement also published six rectification measures, including strengthening source control and establishing a "one household, one file, dynamic review" management mechanism; actively promoting the "company + farmer (farm)" breeding model with unified supply of breeding pigs, feed, and veterinary drugs; increasing spot inspection efforts on risk monitoring items such as lincomycin and cooperating with third-party professional testing institutions; strictly implementing the pre-slaughter resting system for pigs and comprehensively strengthening production process management.
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